Houston, Texas-based Crimson Advisors has secured a $105.6m loan from Landesbank Hessen Thuringen (Helaba) for the construction of a residential development at 546 West 44th Street in Manhattan’s Hell’s Kitchen neighborhood.
A joint venture of Crimson Real Estate Fund, DHA Capital and USAA Real Estate Company purchased the block-through site and former parking garage — between 10th and 11th Avenues on Manhattan’s far west side — from Pasha Group for $50m in December 2012.
The firms declined to comment, but original development plans called for two 14-storey towers comprising about 300 units across 220,000 square feet.
A previous commitment for a housing ratio consisting of 80 percent market-rate units and 20 percent affordable units gives the developers tax and development benefits under the city’s 80/20 housing program.
The program offers developers certain tax credits that can be syndicated to generate equity or to offset taxes. The agreement also allowed the developers to stretch the original zoning allowance for just 165,000 square feet of development at the site.
The development grazes the northern edge of the Hudson Yards neighborhood on Manhattan’s far west side, home to the High Line park and Related Companies’ up-and-coming 17 million-square-foot Hudson Yards project. It is located across the street from the Gotham Organization’s new mixed-use Gotham West project, which features 1,238 rental units in four buildings.
New York-based luxury developer Blackhouse is also shopping for a $300m construction loan on the Shanghai Club Tower, a planned 60-storey hotel and luxury condominium located about four city blocks south, as first reported by Real Estate Capital.